Broward school workers going elsewhere for health insurance

Broward County third-grade teachers Kimberly and David Plaksin are stuck.

Expecting twins next month, the Plaksins can't get around having to pay Broward County Schools' high health insurance rates for dependents – rates so high the majority of those who work at the sixth-largest school district in the nation refuse to pay, going elsewhere if they can.

From the lowest-cost option to the highest, Broward County's largest employer offers its 26,500 employees health care premiums to cover spouses and children that far outpace rates paid by employees in other South Florida school districts.

For example, Broward's basic plan from Coventry Health Care of Florida for one child is $443.48 a month for ages 0-4 and $192.82 monthly for ages 5-26. These rates include no contribution from the school board.

Palm Beach County's lowest premium plan, by contrast, is based on a higher copay and higher deductible approach, but costs employees $136 a month to cover a child of any age. And employees eligible for the $50 monthly rewards for wellness see their premiums whittled down to $86. Palm Beach does contribute to dependent care, $730 a month, in this case.

As the nation wrestles with unlocking the key to affordable health coverage for all, Broward school district leaders acknowledge the high rates for dependants are "out of whack" as one union official put it.

"[The rates] are very high. We cannot deny that," said Dildra Martin-Ogburn, who is executive director for benefits at Broward Schools. "I hear it all the time. We've gotten calls. We know that a lot of employees are unable to pay, and they go elsewhere.''

The school district's monthly primary rates for spouses and other dependents begin at $552 and top $4,440 and can suck up at least 15 percent of the average $44,000 teacher salary—and that doesn't include prescriptions, dental, vision and other coverage.

Behind the numbers at the two districts is a difference in philosophical approaches: the Broward school district and its union agreed to make employees the top priority, picking up the entire tab for all but the option with the most expensive premium. Currently, only 26 employees have signed up for that one.

"I struggle with that our employees like, enjoy and want to continue with a very rich plan," Martin-Ogburn said, "but at the same time the balancing act is really trying to keep that kind of plan without increasing premiums."

Palm Beach, on the other hand, shares the costs with employees across the board.

"We contribute a lot more to dependents," said Dianne Howard, director of risk and benefits management for the district. "We don't have any plan that is absolutely free for employees unless they receive the wellness rewards discounts."

The difference in each district's approach in medical insurance means Broward ends up insuring the dependents of school employees who have few or no alternatives – those whose care may cost the most or those who may use the coverage the most.

"They are attracting the most expensive dependents to the plan," said Matthew Snook, a partner in the Florida office of Mercer, a health benefits consulting firm.

The Plaksins are a case in point.

The Coral Springs couple's combined salary of $87,000 means they make too much to insure the babies—their first—with a government program. Private insurance companies aren't an option, either.

"We have been researching this for months. There is no private insurance company that will take on a baby at birth," said Kimberly, 36, a 15-year Broward Schools veteran. "This puts us in a choice between paying the mortgage or getting health insurance."

In March, the couple will have to start paying $1,140 a month – or roughly one of David's paychecks -- to insure their newborn baby boy and girl. It's even more than what they expected because it's not pro-rated over the usual 9-month school year. Even with extra income David will earn from tutoring sessions, "We still will not be able to cover the difference," Kimberly said.

The Broward School district's handling of health insurance has sparked controversy on more than one front. In 2009, a state ethics complaint was filed against then-School Board member Stephanie Kraft, who at the time was chairwoman of the district's Insurance Advisory Committee. Kraft, according to the complaint, failed to report that her husband worked for a company owned by a lobbyist representing Vista Healthplan. Vista, now known as Coventry, became the district's sole health provider in 2008 for the next three years with three possible one-year extensions after that.

Also in 2009, the Broward Teachers Union filed a lawsuit to block, in part, the proposed 45 percent hikes in dependent coverage the district said at the time were necessary to make up for rising health care costs.